1. Which of the following is an example of monopolistic competition?
a) beverages industry
b) express delivery industry
c) computer hardware industry
d) iron ore industry
2. Which of the following features about a buyer indicates that the buyer has high bargaining power?
a) when the buyer cannot purchase specific products from other sellers
b) when the buyer operates in an industry where products are undifferentiated
c) when the buyer cannot credibly threaten to backwardly integrate into the industry
d) when the buyer faces high switching costs
3. In which of the following situations is the power of suppliers high in an industry?
a) Suppliers depend heavily on the industry for their revenues.
b) Suppliers' industry is more concentrated than the industry it sells to.
c) Suppliers can credibly threaten to backward integrate into the industry.
d) Suppliers offer products that are undifferentiated.
4. With the emergence of smartphones, users no longer have to carry a separate music player, a video game, a laptop, or a magazine to keep themselves entertained when traveling. A smartphone is loaded with a variety of applications to satisfy all the customer needs that different industries or products individually satisfied earlier. As a result, the smartphone industry has been posing a threat to a lot of other unrelated industries. What is this phenomenon best known as?
a) product differentiation
b) industry convergence
c) customer myopia
d) backward integration
5. Which of the following statements is true about strategic groups?
It is not possible to have two different strategic groups within the same industry.
Rivalry within the same strategic group tends to be lower than rivalry between different strategic groups.
Companies within the same strategic group are complementors to each other.
Profitability varies between different strategic groups.